A little over a month after Blue Apron’s disappointing stock market debut, the company is still struggling to make money as wary investors jump ship.
The company said Friday that it will transfer around 24 percent of its workersnearly 1,300 jobsfrom the company’s soon-to-be-shuttered plant in Jersey City, New Jersey to another location 15 miles away.
Employees were told that they would have until October to decide whether to accept comparable positions at the new plant, but a Blue Apron spokesperson said the majority have opted to stay.
“We hope that the remainder of our Jersey City employees will join us in Linden, as their knowledge and experience is invaluable,” the company said in a statement.
An earlier Bloomberg report cited in this article claimed that these workers were being laid off.
The announcement follows news last month that co-founder and chief operating officer Matt Wadiak is stepping down.
Blue Apron’s stock has plummeted 37 percent since its already lackluster IPO in June. Much of its troubles have been blamed on Amazon’s surprise mega-merger with Whole Foods in the weeks before, followed by the online shopping giant’s own entry into the meal kit delivery space last month.
But Blue Apron has other problems giving investors pause outside of Amazon too. The amount of marketing money needed to woo each new customer has been soaring, and analysts don’t see such expensive growth as sustainable. Meanwhile, the customers Blue Apron does have don’t seem to be interested in spending more with the company, and financial disclosures indicate a high level of churn rather than a loyal base.
Blue Apron’s share price was down close to 2 percent as of Friday morning.
Correction: An earlier version of this report cited a Bloomberg report claiming that Blue Apron was laying off a quarter of its employees. A spokesperson clarified that no workers will lose their jobs unless they decide not to transfer.
More From this publisher : HERE